Study from ICMA suggests that corporate bond traders were forced to revert back to voice trading at the height of the recent market volatility.
ICMA research found that while demand for repo increased, dealers’ capacity to intermediate was constrained and limited access to many firms that needed it.
Trade associations have said cash bond markets should be excluded from initial rollout of the CSDR buy-in regime until the regulation’s impact on liquidity is fully assessed.
Both buy- and sell-side firms agree the mandatory buy-in regime will have significant negative implications on Europe’s capital markets.
Asset managers have expressed concerns that the CSDR mandatory buy-in regime will impact liquidity and increase costs.
Martin Egan has been elected as chairman of ICMA and will replace Spencer Lake.
ICMA stresses importance of market making in illiquid bond markets and urges capital relief to encourage the model.
ICMA board member, Joanna Cound, explores how the buy-side should adapt to changing market structure in group’s quarterly report.
Repo market stable despite decline of G-SIFI book decline.